Vietnam’s stock market is increasingly booming, breaking many records and confirming its role as an effective medium- and long-term capital mobilization channel for businesses, according to analysts and managers.

It has developed strongly in both quantity and quality, from 3,000 accounts in 2000 to more than 3.86 million as of the end of October, according to figures from the Vietnam Securities Depository (VSD).

The number of investors has increased sharply in recent times, pushing market liquidity into the billions of USD per session. In the November 19 trading session, liquidity hit a record VND56 trillion ($2.47 billion). The VN-Index set a new record in breaking through 1,500 points on November 25.

The market helps ease pressure on capital supply for the commercial banking system. In addition, over the past two years, as the economy struggled due to the pandemic, many small and medium-sized enterprises were unable to mobilize capital through bank loans but successfully conducted initial public offerings (IPOs) and issued capital increases.

According to Deputy Minister of Finance Nguyen Duc Chi, the stock market plays an increasingly important role as the primary medium- and long-term capital channel for the economy, supporting commercial banks.
However, he also said that it contains many risks that independent and small investors are likely to face.

He added that the Ministry of Finance is working with other ministries and agencies to report to the government and the Prime Minister to soon approve the development strategy for the stock market to 2030 and vision to 2045, in order to have a development roadmap for the years to come.